Australia-based satellite services provider Speedcast International has been hammered by the stock market, and its latest results have not done much to improve the situation.
A profits warning in July created a 40 per cent fall in its share price, and yesterday’s numbers prompted another 32 per cent tumble.
Speedcast is dropping its Chairman as well as its CFO, and many Board members.
A statement said: ““The Board and management are disappointed with the Company’s financial performance, the lower than anticipated contribution from Globecomm and slower organic growth,” CEO P.J. Beylier said in a statement on the earnings results. “Significant steps have been taken to address our operational performance and return Speedcast to growth.”
Speedcast’s overall revenue for the first 6 months of 2019 was $357.6 million, up 17.3 per cent from the same period a year ago. But stripping out Globecomm’s significant contribution, revenue was just $287.3 million, down 5.8 per cent from last year.
EBITDA was 17. per cent of revenue, down from 19.8 per cent a year ago.
Speedcast said its organic VSAT fleet count expanded to 2,928 vessels on June 30th, up 4.3 per cent from December 31st. However, Speedcast is having difficulties with the rollout of a large services contract with giant cruise line Carnival Corp., a deal that Speedcast had said would contribute around 8-9 per cent of Speedcast’s overall 2019 revenues.